Jilin Province Huinan Changlong Bio-pharmacy Co Ltd EBITDA dropped on 25.3% in 2015 and EBITDA Margin decreased on 5.6 pp from 33.6% to 28.0%
30/03/2016 • About Jilin Province Huinan Changlong Bio-pharmacy Co Ltd (
$8049) • By InTwits
Jilin Province Huinan Changlong Bio-pharmacy Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jilin Province Huinan Changlong Bio-pharmacy Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.0%. At the same time it's a lot of higher than industry average of 8.2%.
- CAPEX is quite volatile: 9.2 in 2015, 12.6 in 2014, 81.4 in 2013, 87.9 in 2012, 37.7 in 2011
- The company has highly profitable business model: ROIC is at 18.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jilin Province Huinan Changlong Bio-pharmacy Co Ltd ($8049) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 274.3 | 353.2 | 457.7 | 601.7 | 539.1 | -10.4% |
| Gross Profit | 230.1 | 289.7 | 373.1 | 486.5 | 430.8 | -11.5% |
| SG&A | 174.4 | 230.5 | 292.7 | 344.9 | 316.7 | -8.2% |
| EBITDA | 73.3 | 75.9 | 109.0 | 202.2 | 150.9 | -25.3% |
| Net Income | 50.9 | 58.8 | 79.3 | 132.8 | 117.6 | -11.4% |
Balance Sheet
|
|---|
| Cash | 70.1 | 89.4 | 70.4 | 130.3 | 183.1 | 40.5% |
| Short Term Debt | 1.7 | 6.7 | 0.7 | 1.3 | 4.7 | 255.5% |
| Long Term Debt | 5.4 | 4.8 | 8.1 | 7.5 | 2.9 | -61.3% |
Cash flow
|
|---|
| Capex | 37.7 | 87.9 | 81.4 | 12.6 | 9.2 | -26.9% |
Ratios
|
|---|
| Revenue growth | 36.7% | 28.8% | 29.6% | 31.5% | -10.4% | |
| EBITDA growth | 24.2% | 3.6% | 43.6% | 85.4% | -25.3% | |
| Gross Margin | 83.9% | 82.0% | 81.5% | 80.9% | 79.9% | -0.9% |
| EBITDA Margin | 26.7% | 21.5% | 23.8% | 33.6% | 28.0% | -5.6% |
| Net Income Margin | 18.6% | 16.6% | 17.3% | 22.1% | 21.8% | -0.2% |
| SG&A, % of revenue | 63.6% | 65.2% | 63.9% | 57.3% | 58.7% | 1.4% |
| CAPEX, % of revenue | 13.8% | 24.9% | 17.8% | 2.1% | 1.7% | -0.4% |
| ROIC | 18.5% | 16.7% | 20.8% | 33.0% | 18.7% | -14.2% |
| ROE | 16.1% | 15.9% | 18.3% | 24.6% | 17.7% | -6.9% |
| Net Debt/EBITDA | -0.9x | -1.0x | -0.6x | -0.6x | -1.2x | -0.6x |
Revenue and profitability
Jilin Province Huinan Changlong Bio-pharmacy Co Ltd's Revenue dropped on 10.4% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 5.6 pp from 33.6% to 28.0% in 2015.
Gross Margin decreased slightly on 0.95 pp from 80.9% to 79.9% in 2015. SG&A as a % of Revenue increased slightly on 1.4 pp from 57.3% to 58.7% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
Jilin Province Huinan Changlong Bio-pharmacy Co Ltd's CAPEX/Revenue was 1.7% in 2015. CAPEX/Revenue dropped on 23.2 pp from 24.9% in 2012 to 1.7% in 2015. It's average CAPEX/Revenue for the last three years was 7.2%.
Return on investment
The company operates at good ROIC (18.73%) and ROE (17.69%). ROIC dropped on 14.2 pp from 33.0% to 18.7% in 2015. ROE decreased on 6.9 pp from 24.6% to 17.7% in 2015.
Leverage (Debt)
Debt level is -1.2x Net Debt / EBITDA and 0.1x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from -0.6x to -1.2x in 2015. Debt dropped on 14.0% in 2015 while cash jumped on 40.5% in 2015.
Appendix 1: Peers in Pharmaceuticals
Below we provide Jilin Province Huinan Changlong Bio-pharmacy Co Ltd benchmarking against other companies in Pharmaceuticals industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Health Group Inc ($8225) | | 58.5% | -48.0% | -60.1% | 244.1% |
| Wai Yuen Tong Medicine Holdings Ltd ($897) | | -9.9% | 45.9% | -10.5% | 105.6% |
| Oriental Unicorn Agricultural Group Ltd ($8120) | | 30.2% | -78.1% | 16.8% | 100.8% |
| China Traditional Chinese Medicine Co Ltd ($570) | | 22.3% | 35.2% | 90.0% | 40.0% |
| Shandong Luoxin Pharmaceutical Group Stock Co Ltd ($8058) | | 37.0% | 13.5% | 9.4% | 30.5% |
| |
|---|
| Median (38 companies) | 7.4% | 14.3% | 13.5% | 15.3% | 4.0% |
|---|
| Jilin Province Huinan Changlong Bio-pharmacy Co Ltd ($8049) | | 28.8% | 29.6% | 31.5% | -10.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Luye Pharma Group Ltd ($2186) | 83.0% | 83.5% | 83.6% | 81.0% | 81.4% |
| Consun Pharmaceutical Group Ltd ($1681) | 75.5% | 75.7% | 79.1% | 78.3% | 80.7% |
| Sino Biopharmaceutical Ltd ($1177) | 78.5% | 78.5% | 77.5% | 76.4% | 77.7% |
| China Health Group Inc ($8225) | 38.7% | 43.4% | 33.6% | 76.2% | 75.7% |
| Sihuan Pharmaceutical Holdings Group Ltd ($460) | 76.5% | 75.2% | 56.3% | 68.5% | 70.3% |
| |
|---|
| Median (37 companies) | 38.0% | 39.1% | 37.2% | 48.7% | 49.9% |
|---|
| Jilin Province Huinan Changlong Bio-pharmacy Co Ltd ($8049) | 83.9% | 82.0% | 81.5% | 80.9% | 79.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Northeast Tiger Pharmaceutical Corp Ltd ($8197) | 132.2% | 193.8% | 205,840.0% | -15,344.8% | 49,650.0% |
| Sihuan Pharmaceutical Holdings Group Ltd ($460) | 48.4% | 38.8% | 65.4% | 70.9% | 93.3% |
| Hua Han Bio-Pharmaceutical Holdings Ltd ($587) | 32.9% | 60.6% | 21.0% | 28.8% | 61.1% |
| U-Home Group Holdings Ltd ($2327) | 23.9% | 9.8% | -16.6% | -46.7% | 51.7% |
| Beijing Tong Ren Tang Chinese Medicine Co Ltd ($8138) | 29.7% | 41.3% | 45.4% | 47.5% | 49.1% |
| |
|---|
| Median (38 companies) | 17.0% | 18.7% | 19.7% | 21.4% | 20.0% |
|---|
| Jilin Province Huinan Changlong Bio-pharmacy Co Ltd ($8049) | 26.7% | 21.5% | 23.8% | 33.6% | 28.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hao Wen Holdings Ltd ($8019) | 6.4% | 30.0% | 2.3% | 38.2% | 44.8% |
| Hua Han Bio-Pharmaceutical Holdings Ltd ($587) | 3.8% | 0.9% | 1.4% | 7.6% | 40.5% |
| Lee's Pharmaceutical Holdings Ltd ($950) | 8.5% | 18.6% | 20.9% | 7.1% | 26.1% |
| Tianda Pharmaceuticals Ltd ($455) | 4.8% | 6.0% | 3.9% | 10.5% | 24.4% |
| Lijun International Pharmaceutical Holding Co Ltd ($2005) | 19.5% | 16.8% | 52.4% | 39.6% | 18.7% |
| |
|---|
| Median (37 companies) | 10.3% | 8.2% | 8.1% | 7.6% | 4.5% |
|---|
| Jilin Province Huinan Changlong Bio-pharmacy Co Ltd ($8049) | 13.8% | 24.9% | 17.8% | 2.1% | 1.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sino Biopharmaceutical Ltd ($1177) | 19.9% | 26.2% | 26.8% | 26.5% | 26.2% |
| Beijing Tong Ren Tang Chinese Medicine Co Ltd ($8138) | | 25.3% | 27.5% | 23.8% | 25.9% |
| Sihuan Pharmaceutical Holdings Group Ltd ($460) | 14.3% | 13.7% | 18.3% | 22.0% | 25.4% |
| Dawnrays Pharmaceutical Holdings Ltd ($2348) | 17.7% | 12.6% | 14.0% | 17.8% | 23.5% |
| Lee's Pharmaceutical Holdings Ltd ($950) | 31.3% | 26.1% | 22.0% | 22.4% | 22.7% |
| |
|---|
| Median (39 companies) | 8.5% | 12.2% | 9.3% | 11.1% | 10.1% |
|---|
| Jilin Province Huinan Changlong Bio-pharmacy Co Ltd ($8049) | 18.5% | 16.7% | 20.8% | 33.0% | 18.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Northeast Tiger Pharmaceutical Corp Ltd ($8197) | 2.2x | 2.3x | 3.7x | | 22.2x |
| U-Home Group Holdings Ltd ($2327) | 3.3x | 10.1x | | | 9.9x |
| Lansen Pharmaceutical Holdings Ltd ($503) | 0.9x | 1.7x | 2.8x | 3.4x | 4.7x |
| China Grand Pharmaceutical and Healthcare Holdings Ltd ($512) | 2.5x | 5.4x | 4.0x | 3.4x | 4.3x |
| United Laboratories International Holdings Ltd/The ($3933) | 4.4x | 6.5x | 4.6x | 4.2x | 4.0x |
| |
|---|
| Median (31 companies) | -0.4x | 0.0x | -0.2x | -0.6x | -0.3x |
|---|
| Jilin Province Huinan Changlong Bio-pharmacy Co Ltd ($8049) | -0.9x | -1.0x | -0.6x | -0.6x | -1.2x |
